Operator: Thank you for standing by and welcome to Lennar's First Quarter Earnings Conference Call. At this time, all participants are in a listen-only mode. After the presentation, we will conduct a question-and-answer session. Today's conference is being recorded. If you have any objections, you may disconnect at this time.

I will now turn the call over to Mr. David Collins for the reading of the forward-looking statement.

David Collins - Controller: Thank you. Today's conference call may include forward-looking statements that are subject to risks and uncertainties relating to Lennar's future business and financial performance. These forward-looking statements may include statements regarding Lennar's business, financial conditions, results of operations, cash flows, strategies and prospects. Forward-looking statements represent only Lennar's estimates on the date of this conference call and are not intended to give any assurance as to actual future results.

Because forward-looking statements relate to matters that have not yet occurred, these statements are inherently subject to risks and uncertainties. Many factors that could cause Lennar's actual activities or results to differ materially from the activities and results anticipated in forward-looking statements. These factors include those described under the caption, Risk Factors, contained in Lennar's Annual Report on Form 10-K most recently filed with the SEC. Please note that Lennar assumes no obligation to update any forward-looking statements.

Operator: I would now like to introduce your host, Mr. Stuart Miller, CEO. Sir, you may begin.

Stuart A. Miller - CEO: Great. Thank you and good morning, everyone. Thanks for joining us for our first quarter 2013 update. We're pleased to share our results this morning. I'm joined this morning by Bruce Gross, our Chief Financial Officer; Dave Collins, who you just heard from, our Controller and Diane Bessette, our Vice President and Treasurer. Additionally, Rick Beckwitt, our President; and Jeff Krasnoff, Chief Executive Officer of Rialto are with us here as well. Jon Jaffe, our Chief Operating Officer is available by phone for the Q&A session.

We also have with us Eric Feder who has been a bridge for deals within the Company and today is his birthday, so we asked him to join us for the conference call today, so happy birth day, Eric.

I'd like to begin this morning with some remarks on the overall state of the housing market recovery and then briefly overview our operation. Bruce is then going to provide some detail on our financial services segment as well as some additional color on our overall numbers, and as always we'll open it up for Q&A, and we request that during the Q&A time period that each person limit themselves to one question and one related follow-up.

So, to begin, let me make four macro points about the housing market recovery. First, housing is recovering and the recovery is consistent, healthy and growing stronger. We saw from yesterday's housing starts and permits numbers that the recovery in housing is continuing to progress in both multifamily and single-family products. This data confirms what we've seen in the field for some time. There's been an underproduction of housing during the downturn as we produced as few as 550,000 homes per year during the downturn of both multi and for sale product. This is very close to the rate at which homes become obsolete.

Transcript Call Date 03/20/2013

Operator: Stephen East, ISI Group.

Paul Przybylski - ISI Group: Actually this is Paul Przybylski on for Stephen. I was wondering if you could go over your philosophy on order pace versus price and what you are focusing on now as we move through the year.

Rick Beckwitt - President: It's Rick Beckwitt. It's a delicate balance in the field. We are reviewing pricing weekly in every community across the country. We have been increasing prices probably every couple of weeks in some communities, at least once a month in all communities, and we balance the pace/price split really on a local basis. Our preference is to increase price over pace, particularly in communities where we have long position – a lot of home sites to close out ahead of us, and to the extent that we are at the back end of the community, we may move through that community without too much price increase because of the incremental overhead associated with the fewer deliveries.

Rick Beckwitt - President: I think that you could probably count on about $500 million a quarter.

Operator: Michael Rehaut, JPMorgan Chase.

Michael Rehaut - JP Morgan Chase: Appreciate your comments at the beginning Stuart where you mentioned some macro comments that you believed the housing recovery is actually growing stronger and that credit also is slowly improving. I was wondering if you could give certainly your own trends are improving quarter-to-quarter, particularly in terms of price and the comments that Rick gave are very helpful. Are there any other areas of specificity or granularity, particularly as it relates to the market growing stronger? It kind of almost points to acceleration, and I think that kind of delight some of the optimism, particularly around pricing that you shared with us when we met with you last month.

Stuart A. Miller - CEO: I think Mike that I think that when we look backwards what we have generally seen is that the trends that start to reveal themselves in the national numbers and come through performance reports are saying that we start to see and feel in the field early. It's tough to be granular about these things. It's more about traffic, quality of traffic and the conversations at the field level that you're having with customers. I've noted that this recovery is starting to feel fundamentally driven and fundamentally sound and it's primarily because the communications in the field are about people thinking about their monthly payments as it compares to rental rate, their monthly payment as it compares to stability and disposable income and this is a real shift from people just kind of saying, hey, I want to own a home. It is about nickel, dollars and dimes and making sure that they are managing their life as well as possible. We are seeing that demand is growing. It is somewhat constrained by the smaller funnel of mortgage approvals and so we are seeing not as much demand come through the numbers as demand is out there and the constraint of the mortgage approval process is really keeping the recovery worse today than it feels like it wants to be, and again this is somewhat of a feeling from the field. Now, looking at the mortgage approval process, it feels like it's fairly static, when we think about it in kind of real-time sense. But if we go back a year or we go back two years, the mortgage approval process has really liberalized itself quite a bit. It was just a couple of years ago that it was virtually impossible to make your way through the maze of the paperwork and verifications that were required to get a mortgage, and though those might not be hard credit statistic, those impediments were just as severe as a 780 FICO score. People didn't want to go through the morass of trying to get a mortgage. Today, it is a more streamlined process. The buyer is educated as to what their down payment, their FICO scores, their credit stats have to be in order to get approved and they are coming in more prepared. Mortgage money is becoming marginally more available, and I think that trend will continue as we start to get legislative and regulatory certainty injected in the banking system. The overlays will start to dissipate a little bit.